Jaguar Land Rover Case Questions[6708].docx - Jaguar Land Rover Case Questions 1.What factors might have enabled JLR to raise new debt at less than half

Jaguar Land Rover Case Questions[6708].docx - Jaguar Land...

This preview shows page 1 - 2 out of 3 pages.

Jaguar Land Rover Case Questions1.What factors might have enabled JLR to raise new debt at less than half the coupon rate of interest in 2015 compared to 2011?-It important to note that asides from JLR’s increasing revenues in the years 2012-2014, there were other contributing factors that resulted in even further revenue streams. Suchfactors are the foreign exchange revenue in the fiscal year of 2014 as JLR reported a gain of over GBP83 million. This is a significant contributor as previous year (2012-2013)only recognized foreign exchange revenues of only GPB 14 and a deficit of GBP (109) respectively. Given the increase of revenue streams in foreign exchange leading up to 2015, the management decided that such an increase of demand on the British Pound would surely enable for a safer bond evaluation, which would ultimately result in a lower coupon payment despite S&P ratings. -Other sources of income have surely assisted in better credit ratings such as, finance income as well as other income, both sources of income have more than doubled in the years of 2012 to 2014 for other income and finance income. This further demonstrates

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture